If you are overwhelmed with the chore of selling your boat, you may want to consider donating it instead. Selling anything always takes time and energy. With potential buyers calling and emailing with a multiple of questions, it can become quite a headache. Maybe you’ve already shown your boat to a few potential buyers who are ultimately not interested. Then you have to deal with the frustration of everyone trying to haggle on the price. Sometimes is better to just give things away!
Before you make a donation to a charity, you’ll want to keep some things in mind. Here are a few tips to help you when considering making a boat donation:
Research the recipient(s). Did you learn of them through a recommendation? What do you really know about them? Check to be sure if they are IRS-approved 501(c)(3) organizations, because only then will your donation be tax deductible. Next, determine how much of the proceeds they will actually receive from the sale of the boat. Is a third party involved that may take part of the proceeds from the sale, and if so, how much? Whatever charity you choose, just make sure that they can get the most out of your boat donation. You can easily find good, sustainable charities by researching Charity Navigator and the Better Business Bureau to find the best charity for your boat donation.
Also, will the charity provide you with the necessary tax forms? Are they willing to discuss which IRS tax forms you will need? Although not everyone needs help filing their IRS forms, it’s nice to know you’ll have it, just in case. The charity can’t give you legal advice, so you’ll want to consult with your accountant if you have any legal questions regarding your boat donation.
Some boat donators may just be happy to give the gift to a worthy charity, while others may be interested in the tax deduction. Make sure you get a Fair Market Deduction for your boat donation.
For example, is there a cost to donate the boat, such as picking it up or towing it? Look for a charity that charges no costs for your boat donation. If possible, deliver the boat yourself to the required address; this will help keep the charity costs down, too, so they can make the most out of you boat donation.
Finally, keep proper documentation of the transaction. Make sure you transfer the title properly. Never hand over an unsigned title. If you’re unsure how this works, find out exactly how to transfer titles. Then, make copies of everything in case you have to reference it later; that way, all the forms will be available and keep you free of any future headaches.